Subway reached an agreement with a master franchisee to open nearly 4,000 new sandwich shops across mainland China over the next 20 years, it said on Tuesday, reports Reuters. International expansion is a key growth strategy for the privately owned US-based chain, which is in the midst of a turnaround plan that also relies on remodeled restaurants, updated menus and a splashy marketing campaign.
While it seeks to expand overseas, the company has been closing thousands of US locations amid a host of problems including over-expansion and discounts that eroded franchisees’ profits. Even so, Subway’s global comparable sales rose 12.1% in the first quarter.
Other companies are also beefing up their presence in China, including Starbucks, which plans to open 3,000 new stores there by 2025.